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Home My WebLink AboutR37-Economic Development Agency • CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY ORIGINAL FROM: Emil A.Marzullo SUBJECT: Mobile Home Rent Board Expenditure - Interim Executive Director Appropriating Agency Low/Mod Housing Funds to the General Fund DATE: July 29,2009 Synopsis of Previous Commission/Council/Committee Action(s): On March 6, 2009, the Mobile Home Rent Board met to discuss the proposed rent increases for Orangewood, Pacific Palms, Glen Aire and Hillside Mobile Home Parks. The Mobile Home Rent Board voted unanimously to postpone said rent increases until an independent appraiser can be obtained to review proposed rent increases. On May 20, 2009,the Mobile Home Rent Board met and voted unanimously to seek the authority of the Mayor and Common Council to hire an independent appraiser, Spanish translator and hearing officer to review current appraisals and oversee the next mobile home hearing. Recommended Motion(s): (Mayor and Common Council) Motion: That the Mayor and Common Council of the City of San Bernardino request the appropriation of an amount not to exceed $44,480 from the Redevelopment Agency of the City of San Bernardino Low and Moderate Income Housing Funds for deposit to the City of San Bernardino General Fund for costs associated with the procurement of an Independent Appraiser, Spanish Translator and Hearing Officer as it relates to the proposed rent increases for Orangewood, Hillside, Glen Aire and Pacific Palms Mobile Home Parks (Community Development Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the appropriation of an amount not to exceed$44,480 from the Redevelopment Agency of the City of San Bernardino Low and Moderate Income Housing Funds for transfer to the City of San Bernardino General Fund for costs associated with the procurement of an Independent Appraiser, Spanish Translator and Hearing Officer as it relates to the proposed rent increases for Orangewood, Hillside,Glen Aire and Pacific Palms Mobile Home Parks Contact Person(s): Carey K.Jenkins/Lisa A. Connor Phone: (909)663-1044 Project Area(s): N/A Ward(s): 3 and 7 Supporting Data Attached: El Staff Report El Resolution(s) ❑Agreement(s)/Contract(s) ❑Map(s)❑ Letter(s) Funding Requirements: Amount: $ 44,480 Source: Low/Mod Housing Fund Budget Authority: FY 2009-2010 Budget _ Signature: Fiscal Review: Emil A.Marzullo,In ecutive Director Ru . DeJes - im Admin .tive Services Director Commission/Council Notes: Q SU (236../ O 9-7,3 P:\Agendas\Comm Dev Commission\CDC 2009\08-03-09 MHRB Expenditure.doc COMMISSION MEETING AGENDA Meeting Date: 08/03/2009 Agenda Item Number: 1 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT MOBILE HOME RENT BOARD EXPENDITURE -APPROPRIATING AGENCY LOW/MOD HOUSING FUNDS TO THE GENERAL FUND BACKGROUND: On February 13, 2009, Merhab, Robinson & Jackson on behalf of the non-profit corporation for Pacific Palms, Hillside Estates (Formerly Friendly Village), Orangewood Estates, and Glen Aire Mobile Home Parks ("Petitioner") petitioned the Mobile Home Rent Board ("Board") to request a rent increase pursuant to Municipal Code Section 8.90.100B of the Mobile Home Park Rent Stabilization Ordinance ("Ordinance"). Section 8.90.100B,Net Operating Income Adjustment, states that if a park owner believes he or she is not receiving a just and reasonable return on the park property after receiving the maximum permissive rental adjustment (80% of the CPI), said park owner may, upon payment of a filing fee established by resolution of the Mayor and Common Council of the City of San Bernardino ("Council"), file an application with the Board for an adjustment of the space rent ceiling, providing adequate justification for the proposed increase. The Petitioner has filed in accordance to the Municipal Code and has supplied the necessary information required pursuant to Municipal Code Section 8.90.100B.2. On March 6, 2009, the Board met to discuss the proposed rent increases for each Park. At the meeting, Mr. Gary Brenzell, CPA, hired to determine the valuation of the Parks provided a justification as to the calculations used to determine each Park's prospective rent increase. This is a one-time per unit rental increase which will be added to the maximum permissible adjustment in order for the Petitioner to receive a just and reasonable return on each mobile home park. After which, each unit will be subject to the maximum permissive rental adjustment annually which is based on eighty percent (80%) of the CPI. The proposed rent increases are as follows: Mobile Home Park Range of Current # of Units Proposed Monthly Monthly Rents Affected Rent Increases Per Unit Pacific Palms $315 - $409 96 $75.50 Hillside $336 - $414 49 $80.65 Glen Aire $294 - $410 112 $82.87 Orangewood $268 - $395 101 $91.04 Also, in attendance was John Neet, Certified Real Estate Appraiser, who provided an analysis as to the Parks fair rate of return. Due to the amount of evidence submitted by the residents, such as petitions, complaints, photographs of maintenance issues, and the amount of questions regarding the appraisals, the Board voted unanimously to continue the meeting to May 20, 2009, to allow the Board the time necessary to review the evidence submitted and to secure an independent appraiser who could review the proposed rent increases. According to Paragraph I of Section 8.90.110 of the Municipal Code, the Board does not have the authority to expend or authorize the expenditures of any public funds, except with the prior approval of the Council. Therefore, on May 20, 2009, the Mobile Home Rent Board met and voted unanimously to seek the authority of the Council to hire an independent appraiser who would review the owner's report, P:\Agendas\Comm Dev Commission\CDC 2009\08-03-09 MHRB Expenditure doe COMMISSION MEETING AGENDA Meeting Date: 08/03/2009 8/ Agenda Item Number: P 1°1 Economic Development Agency Staff Report Mobile Home Rent Board Expenditure Page 2 current appraisals, and provide an independent appraisal. Also, the Board requested that a Spanish translator be present at the next meeting and that a hearing officer be hired to oversee the testimony of the parties involved and report the findings and results back to the Board. CURRENT ISSUE: On May 18, 2009, in closed session, the Council approved the expenditure of$44,480 to secure the above mentioned services. On July 6, 2009, the Council directed the Interim Executive Director of the Agency to transfer the expenditure in the amount of $44,480 to the City Manager's office who will handle the procurement of the services requested by the Board. ENVIRONMENTAL IMPACT: The action of authorizing the expenditure of$44,480 from the low/mod housing fund does not meet the definition of a "Project" under Section 15378 of the California Environmental Quality Act ("CEQA") which states that a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. FISCAL IMPACT: $44,480 from the Agency Low/Mod Housing Fund (2009-2010 EDA Budget) to be transferred to the General Fund. RECOMMENDATION: That the Mayor and Common Council approve said Motion and the Community Development Commission adopt the attached Resolution. Emil A. Marzullo, Interim Executive Director P:\Agendas\Comm Dev Commission\CDC 2009\08-03-09 MHRB Expenditure doe COMMISSION MEETING AGENDA Meeting Date: 08/03/2009 �7Agenda Item Number: 1 cin it-,,,:,,,,,„ „..... u--- , 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 3 THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE APPROPRIATION OF AN AMOUNT NOT TO EXCEED $44,480 FROM 4 THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO LOW AND MODERATE INCOME HOUSING FUNDS FOR TRANSFER TO 5 THE CITY OF SAN BERNARDINO GENERAL FUND FOR COSTS 6 ASSOCIATED WITH THE PROCUREMENT OF AN INDEPENDENT APPRAISER, SPANISH TRANSLATOR AND HEARING OFFICER AS IT 7 RELATES TO THE PROPOSED RENT INCREASES FOR ORANGEWOOD, HILLSIDE, GLEN AIRE AND PACIFIC PALMS MOBILE HOME PARKS 8 9 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is a 10 public body, corporate and politic; and 11 WHEREAS, the Mayor and Common Council adopted the Mobile Home Park Rent 12 Stabilization Ordinance No. MC-726 which regulates rents in applicable mobile home parks 13 throughout the City; and 14 WHEREAS, the Mobile Home Rent Board ("Board") was established by Ordinance MC-726 15 to facilitate and encourage fair and equitable negotiations between mobile home owners and park 16 owners to ensure enforcement of the rent controls described in the City's Ordinance; and 17 WHEREAS, the Board met and voted unanimously to seek the authority of the Council to 18 retain an hearing officer, Spanish translator and an appraiser to perform an independent appraisal of 19 Orangewood, Hillside, Glen Aire and Pacific Palms Mobile Home Parks; and 20 WHEREAS, on May 18, 2009, the Council requested the expenditure of$44,480 from the 21 Low and Moderate Income Housing Fund of the Redevelopment Agency of the City of San 22 Bernardino for costs associated with the procurement of an independent appraiser, Spanish 23 translator and hearing officer. 24 WHEREAS, it is necessary to adopt a Resolution making the necessary findings and 25 determinations that said appropriation is an appropriate use of the Low and Moderate Income 26 Housing Fund in accordance to Section 33334.2 of the Health and Safety Code. 27 28 1 P:\Agendas\Resolutions\Resolutions\2009\o8-03-09 MHRB CDC Reso.doc 1 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND 2 ORDERED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN 3 BERNARDINO, AS FOLLOWS: 4 Section 1. The Commission finds and determines that the facts and circumstances set 5 forth in the Recitals hereof are true and correct in all respects. 6 Section 2. The Commission hereby approves the appropriation of an amount not to 7 exceed $44,480 from the Low and Moderate Income Housing Fund to the City General Fund for 8 costs associated with the procurement of an independent appraiser, Spanish translator and hearing 9 officer as it relates to the proposed rent increases for Orangewood, Hillside, Glen Aire And Pacific 10 Palms Mobile Home Parks. 11 Section 3. The Commission hereby finds and determines that said appropriation is a 12 proper use of the Low and Moderate Income Housing Fund in accordance with Section 33334.2 of the 13 Health and Safety Code and in furtherance of the housing programs of the Agency within the City. 14 Section 4. This Resolution shall take effect from and after its date of adoption by this 15 Commission. 16 //// 17 //// 18 //// 19 //// 20 //// 21 //// 22 //// 23 //// 24 //// 25 //// 26 //// 27 //// 28 //// 2 P:Agendas\Resolutions\Resolutions\2oo9\08-03-09 MHRB CDC Reso.doc • 1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING 2 THE APPROPRIATION OF AN AMOUNT NOT TO EXCEED $44,480 FROM 3 THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO LOW AND MODERATE INCOME HOUSING FUNDS FOR TRANSFER TO 4 THE CITY OF SAN BERNARDINO GENERAL FUND FOR COSTS ASSOCIATED WITH THE PROCUREMENT OF AN INDEPENDENT 5 APPRAISER, SPANISH TRANSLATOR AND HEARING OFFICER AS IT RELATES TO THE PROPOSED RENT INCREASES FOR ORANGEWOOD, 6 HILLSIDE, GLEN AIRE AND PACIFIC PALMS MOBILE HOME PARKS 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 8 Development Commission of the City of San Bernardino at a meeting 9 thereof, held on the day of , 2009, by the following vote to wit: 10 11 Commission Members: Ayes Nays Abstain Absent 12 ESTRADA 13 BAXTER 14 BRINKER 15 SHORETT 16 KELLEY 17 JOHNSON 18 MC CAMMACK 19 20 Secretary 21 The foregoing Resolution is hereby approved this day of , 2009. 22 23 24 Patrick J. Morris, Chairperson Community Development Commission 25 of the City of San Bernardino Approved as to Form: 26 27 By: _ •t■ 1' Z8 Agency C nsel 3 P:Agendas\tesolutions\Resolutions\2009\08-03-09 MHRB CDC Reso.doc